Bitcoin Profits Through Quad Exit Strategy

Within last weeks’ news rich environment, from a possible short squeeze in Silver to the Fed meeting, Bitcoin experienced much volatility. Thankfully, we were able to extract substantial profits. Let us share one of our core principle tools that allowed us to do so. Our Quad Exit Strategy. This useful tool is not just helpful in volatile sideways ranges like we experienced so far in 2021 but will come in handy especially when the trend reestablished itself soon again. Bitcoin profits through Quad exit strategy.

We use quad exits to honor the principle of “Choices.” Our approach is an “all in” system with a high expectancy of immediate profits based on the action-reaction principle. We are contrarians and are fading moves. As such, we exit half of the position shortly after entry for small gains to mitigate risk. Then we take another 25% off the position on our first target and another 25% on our 2nd final target.

Here are the significant advantages of the Quad Exit Strategy: It is typically getting more and more stressful for the mind through increased fear that gained profits might disappear. The quad exit supplements by making you emotionally an instant winner on your first exit.

BTC-USDT, Daily Chart, Risk taken out before the breakout:

BTC-USDT, daily chart as of February 1st, 2021

BTC-USDT, daily chart as of February 1st, 2021

The principle is that the more extended a move, the more extensive the possible snap back to the mean. Fear of missing out on profits tends for amateur traders to either make a tight stop, which takes them out or worse, they use a stop somewhat in the middle, taking quite big profits away and still getting stopped out. Principle-based though is to have either an extensive stop or take a profit target. However, both are very hard to do due to our human psychology. With the Quad Exit Strategy, you erase these hardships. You exit with half to mitigate risk and create a psychological balance following the instinct to cash in. Now you have two segments of each 25% of the total position size still left to be very flexible in maneuvering.

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Disclaimer: All published information represents the opinion and analysis of Mr Florian Grummes & his partners, based on data available to him, at the time of writing. Mr. Grummes’s ...

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